Joey Yung Or

1 “Fort Erie Celebrates Year of the Horse” Proposal

Created by Racing Future/Prime Advertising/Purple Integration Nov 13, 2013

2 Agenda

1. Background 2. Issues 3. Project Scope, Goals and Objectives 4. Strategies and Channels 5. Pre-event Promotion 6. The Event 7. Promotion and Media 8. Estimated Attendance 9. Budget Allocation

Fort Erie Race Track Backgrounder

. Opened in June 1897, Fort Erie Racetrack is one of most storied tracks in North America and the oldest in Canada. . Home of the $500,000 Prince of Wales Stakes (the 2nd jewel in Canada’s Triple Crown). . Home of the famous Northern Dancer’s maiden victory. . Operates from May to October annually, with races primarily on Tuesday and Sunday. . House up to 1,100 horses during the season (500 during the 2013 season). . Generates 3rd highest wagering in Canada. . 20% patrons are from the US. . Horseracing and breeding industry is the 2nd largest industry in the agricultural sector in Ontario, second to dairy industry. . In 2010, the total economic contribution from the industry was approximately $4.5 billion. 4 The Issues

Termination of the Slots at Racetrack (SARP) program is having a devastating impact on the Ontario horse racing industry: . Reduced purse and race dates. . Mass exodus of horses / breeders to the US. . Increase prolonged unemployment, especially most of the jobs in the industry involve unskilled labour.

Project Scope . In partnership with Racing Future, create an extended campaign to inspire renewed interest in Fort Erie Racetrack.

Objectives . Engage large volume of traffic, especially from ethnic communities.

. Encourage onsite gaming activities.

6 Channel Strategies to drive traffic

Media PlacementGiant Regal Horse Overnight Online Hotel Community Package Fort Erie Building Celebrates Year of the Horse Event (3 weekends) Community & One-day Corporate Tour with Donation for Coach Regal Horse

Celebrity Concerts Campaign Strategy

Regal Horse Community Challenge Tour Packages

The Year of the Horse Horse 101 Festival / Website and Concert game

Special Races Event Logo Event Poster

10 Pre-event Promotion

11 Pre-event Promotion

1.Chinese New Year Celebrations sponsorship

2. Press Conference 3. Regal Horse road show 4. Horse 101 website with social media

12 CNY Celebrations Sponsorship

Event Highlights 1. Lucky Windmill giveaway 2. Lion Dance Competition 3. Photo Opportunity with North America’s largest Lion Head 4. Flash Mob Dance – first of its kind in a major Asian Mall 5. Cultural performances on stage

6. Interactive booth to showcase Chinese culture and activities fit for all ages

7. Live shows on stage featuring popular TV and Radio celebrities

13 CNY Celebrations Sponsorship

Strategy #1 - Signature Attraction

Develop a major attraction at Fort Erie Racetrack with a central focus.

Year of the Horse Celebration with a record-setting Regal Horse as the centerpiece.

. The ‘Regal Horse’ is the largest man-made horse built by traditional bamboo scaffolding technique, used primarily in Hong Kong.

Strategy #2 - Engagement

Include different elements to attract different segments:

. Horses 101 Website.

. Special weekend packages for local tour operators.

. Celebration events in three consecutive weekends, each with a specific theme:

. Week #1: 10, 11 August, 2014 – Regal Arrival (completing the Regal Horse)

. Week #2: 17, 19 August, 2014 - Celebration of Asian Heritage in Canada

. Week #3: 24, 26 August, 2014- Diversity Week Celebration

Strategy #3 - Partnership

Leverage community partnerships and regional resources;

. Community Challenge involving not-for-profit organizations (i.e. The United Way, Heart & Stroke Foundation, etc.) and corporate partnership. . Regional and municipal government and boards of trade. . Counsul General Office of the People’s Republic of China in Toronto. . Hong Kong Economic & Trade Office / Hong Kong Tourism Board. . National Ethnic Press and Media Council of Canada.

Timeline

Weekend of Weekend of Weekend of January - August August 10th August 17th August 24th

Launch of Regal Horse, Horses 101 website, Mobile Exhibition Unveiling of Regal Horse Asian Heritage Celebration Diversity Week Celebration

18 Strategy #1 - Signature Attraction

The ‘Regal Horse’

. Specially commissioned by tradesmen coming from Hong Kong, the Horse is approx. 30’ (L) X 20’ (H). . This is expected to set a Guinness Book of Records for being the largest man-made horse using bamboo. . "The largest wooden rocking horse measured 24 ft 11 in x 10 ft 6 in x 20 ft and was created by Ofer Mor in Kadima, Israel, where it was completed on 12 September 2010.

. To be launched in Toronto, the “Regal Horse” will travel to different cities, in a decorated carriage, across Southern Ontario as a mobile exhibition. 20

Bamboo Scaffolding

. Bamboo scaffolding is not commonly used for building large structure except in Asia, especially in Hong Kong.

. It may look low tech, but bamboo is a perfect scaffold material, being strong, straight, lightweight, cheap and renewable.

. This ancient building material is most impressive when juxtaposed against modern high tech buildings and is sometimes used as scaffold for the tallest of skyscrapers.

. Bamboo scaffolding has been used for more than 5,000 years in Southeast Asia.

21 Bamboo Scaffolding

22 The Art of Bamboo Scaffolding

23 The Giant Bamboo Scaffolding Horse

The ‘Regal Horse’

. Like a quilt, pieces of ‘skin’ will be provided to charities for fundraising – on their own, they raise money by getting donors’ names / palm prints on the ‘skin’. Once each piece is completed, it will be attached to the horse.

. The ‘Regal Horse’ will be unveiled at Fort Erie on the opening weekend of the June celebration.

25 Miniature Bamboo Scaffolding Horse Mobile Exhibition

26 Strategy #2 - Engagement

Horses 101

. Education and promotion of thoroughbred / horse racing with online games, promotions and rewards.

Horses 101 (con’t)

. Build online community, with special emphasis on data collection and active engagement through e-Blasts and social media. . Interactive online training to become virtual rider, trainer, owner. . Test knowledge to earn ‘coins’ for online games. . Coins can be spent to purchase new equipment, races in different cities, purchase additional horses. . Remaining coins can be redeemed at Fort Erie as actual wager.

Community Challenge

.Goals: . To leverage record-setting ‘Regal Horse’ for the good of the community. . To create engagement opportunities, with both grassroots and corporate communities.

.Multi-level engagement: . Non-profit organizations, from the GTA, Burlington, Hamilton, Niagara region and New York State are invited to adopt the ‘Regal Horse’ and receive the ‘skin’ for fundraising purposes. . All the participating organizations, donors, supporters are invited to take part in the unveiling of the ‘Regal Horse’ and each will receive a certificate of participation. . Selected organizations will be invited to sell 50/50 raffle during one of the festival weekends. Raffle stub can be redeemed for betting.

Tour and Hotel Package

31 Special Tour Package (overnight)

. Create packages for local tour operators;

. $150 – coach transportation to festival, concert, a meal, $10 voucher for betting, hotel stay.

32 Special Tour Package (one day)

. Create packages for local tour operators;

. $50 – coach transportation to festival, concert, $10 voucher for betting/

Regal Arrival - Celebration Weekend #1

. Completing the ‘Regal Horse’. . Regal Cup thoroughbred race. . Carnival atmosphere in parking lot; . Multicultural Food Fair. . Stage performances: ‘Canada Got Talents’ type events. . Feature concert – Major Canadian performers – TBD. . Community Challenge.

Regal Arrival (con’t)

. Feature concert – Major Canadian recording artist(s) - (TBD).

. Primary target participants; . Community organizations and sponsors who participated in the ‘Regal Horse’ campaign. . Residents in the Golden Horseshoe, Buffalo who want to be part of the Guinness Book of Records event. . Young professionals . Food & music aficionados . Online community . Tourists

35 Asian Heritage Celebration - Weekend #2

.Asian Heritage Cup - including jockeys from Asia

36 Asian Heritage Celebration (con’t)

. Carnival atmosphere in parking lot; . International Lion Dance Invitational Showcase featuring top martial arts schools from Canada, US, Malaysia and other Asian countries. . Cultural Performances

. Special Exhibition – Asian Canadians’ contribution to Canada. . Community Challenge

37 Asian Heritage Celebration (con’t)

International Lion Dance Invitational Showcase featuring top martial arts schools from Canada, US, Malaysia and other Asian countries.

Asian Heritage Celebration (con’t)

. Feature Concert – by a top Asian artist in the same class as: . Joey Yung or . Zhang Hui-mei (A-Mei) or . Eason Chan or . Jay Chou

Asian Heritage Celebration (con’t)

Joey Yung . Joey Yung is a Hong Kong Cantopop singer and actress from Emperor Entertainment Group. . She won the prestigious JSG "Most Popular Female Singer" and "Ultimate Best Female Singer - Gold" awards a record-breaking eight times. . As the highest paid Hong Kong-based Cantopop singer, Joey is among the top Chinese celebrity according to Forbes Magazine.

40 Asian Heritage Celebration (con’t)

A-Mei

. A-Mei (Chinese: 阿妹; pinyin: Ā Mèi), also known by her Chinese name Zhang Hui-mei. . An aboriginal Taiwanese pop singer and occasional songwriter, A-mei made her debut in the world of music in 1996, achieving rapid commercial success. She has been called a diva of the Mandarin pop music scene and the "Pride of Taiwan". She has won numerous music awards and is extremely popular within Mandarin-speaking world.

41 Asian Heritage Celebration (con’t)

Eason Chan

. Eason Chan , with family roots in Dongguan, Guangdong, is a prominent male Hong Kong singer. . Considered by some to be Hong Kong's third "god of song". In 2012, Time Out Hong Kong crowned Chan as the "King of Asian Pop". Chan is ranked #6 in the 2013 Forbes China Celebrity Top 100 List. . Eason Chan was the big winner at the prestigious Golden Melody Awards in 2003 and 2009. . In 2009, Chan won "Album of the Year" again for his work in Mandarin album "Don't Want to Let Go".

42 Asian Heritage Celebration (con’t) Jay Chou . Jay Chou is a Taiwanese musician, singer-songwriter, multi- instrumentalist and actor. Although he was trained in classical music, Chou combines Chinese and Western music styles to produce songs that fuse R&B, rock and pop genres. He composes all his own songs, as well as songs for other singers. . He produced the theme song for the film Ocean Heaven (2010), starring Jet Li. His career now extends into directing and running his own record company JVR Music. As of 2010, Chou has sold more than 28 million albums worldwide.

43 Asian Heritage Celebration (con’t) . Cultural Performance . Taiko Drum (Japanese), Dance (Korean, Chinese), musical performance (Chinese, South Asian), Chinese Opera featuring young performers Asian Heritage Celebration (con’t)

. Primary target participants; . Asian communities in Ontario and New York . Music fans & Martial Arts enthusiasts . Asian charity organizations . Community organizations and sponsors participated in the ‘Regal Horse’ campaign . Online community . Tourists

45 Diversity Week Celebration Week #3

. Diversity horse show, featuring former race horses of all breeds.

. Diversity racing program, first ever offered in North America and possibly world-wide.

. Feature concert(s).

. Carnival atmosphere in parking lot; . ‘Bao’ (Chinese buns) eating contest – an official event of Major League Eating. . Local celebrity chef to demonstrate different recipes using Molson / Coors products.

46 Diversity Week Celebration (con’t)

. Multicultural Food Fair – inviting food vendor from different communities to showcase the best that they have to offer.

Diversity Week Celebration (con’t)

. Primary target participants; . Active living senior communities in Southern Ontario – Amica / Chartwell Retirement Residences / Villa Colombo / Delmanor / other retirement communities . Community organizations and sponsors participated in the ‘Regal Horse’ campaign . Online community . Tourists

48 Media Proposal

49 Media Proposal

1. Media Objectives 2. Media Strategies 3. Target groups 4. Media Tactics • TV • Radio • Online • Social Media • Mobile ad • Print ads • Transit ads • Hotel TV/ Magazines 5. Budget Allocation and Timeline Overview

50 Media Objectives

• Within the media budget

- Cost effectively reach the target customers with maximum exposure

- Deliver the advertising message to target customers through right media channels

- Successfully achieve the marketing objectives

- Maintain a well balanced media mix with minimum wastage

51 Media Strategies

. Reaching the target audiences by a Multi Media Campaign to create a surround sound effect

. Cautious selection of media to achieve best advertising effects

. Advertise in both local area of Niagara/ Buffalo region and the rest of Ontario

. Phase 1 (Feb – April): emphasize on social media to share advertising message on highly interactive platforms to bring traffic to the event website

. Phase 2 (May – July): all media kick in for full effort to drive traffic to the event

52 Main Target Groups

Mainstream Chinese South Asian

53 Media Tactics Overview

Print ads TV Mobile Radio ad

Hotel Online ads

Transit Social ads & Media Event outdoor

54 Media Tactics & Rationale - TV & Radio

. High reach TV and radio stations are chosen with emphasis on entertainment and sports channels

. High rating programs will be chosen

. A mix of prime time and fringe time spots for frequencies

. Languages : English/ Cantonese/ Mandarin to cover Mainstream, Chinese and South Asian audiences

. Duration of commercial: 30 sec

. Some stations may include Interviews and PR coverage in the buy

55 TV – Mainstream

TV – South Asian TV – Chinese

56 Radio – Mainstream

Radio – South Asian

Radio – Chinese

57 Media Tactics & Rationale - Online

. Media buy with a mix of network sites and premium sites

. Aim at high click through ratio and low cost per click

. Behavioral and contextual targeting placement with remarketing function

. Geo targeting can be done to local area especially on or right before event dates

. Search engine optimization on Google.ca

. Editorial coverage on website is included in premium site buys

58 Online – Mainstream

Google network site

Save a buck digital city guide Online – South Asian

sulekha.com Indiatimes.com

Mybindi.com Online – Chinese

Yorkbbs.ca SouXun88.com

SingTao.ca 51.ca Media Tactics & Rationale - Social Media

. Social media is the most important tactic in this media campaign

. Through social media, advertising message is able to share and spread

. Very cost effective and right to the target

. Different social media platforms will be used for different ethnic groups according to their behaviors

. Videos, Push notifications, Wall posts, Promote tweets

. Social media will kick off the campaign in Feb, 2014

62 Social Media

Weibo Facebook

WeChat Twitter

63 Media Tactics & Rationale – Mobile ads

. Apply to both I-phone and Android phones

. Abel to geo target to the Niagara/ Buffalo area just before and during the event

. Banner ads on apps and text message push notifications

64 Mobile Ads

iphone android

65 Media Tactics & Rationale – Print ads

. Highest circulation publications are chosen for targeted markets

. A mix of daily newspapers and weekly magazines for a better reach

. Print campaign starts early May until end of the event

66 Print – Mainstream

Chinese

South Asian

67 Media Tactics & Rationale – Transit ads

. Go Transit to Niagara . - Backlit Billboards & Wall Murals

. WEGO Bus System which connect accommodations and Niagara tourist areas . Infotainment Monitors on the buses (30 sec commercial)

. Outdoor ads in Niagara Canada & Buffalo, NY . Bus Shelter Posters and Outdoor Billboards

68 Media Strategy – Billboard along highway (401 & QEW)

69 Media Tactics & Rationale – Transit ads

Murals at Go Station

Bus Shelters

70 Media Tactics & Rationale – Hotel print ads & TV ads

Highly targeted tactics to reach the tourists in the Niagara and Buffalo region

. Local Area Magazine ads - Hotel room desk tops, casinos, restaurants, street boxes, Wineries

. Saving Coupon Booklet print ads

. Concierge Map print ads

. Hotel in-room television home screen advertising in 30 sec commercials

Hotel TV Commercials

72 Hotel Magazines

73 Media Budget Allocation

TV $ 300,000.00 Radio $ 100,000.00 Online $ 200,000.00 Social Media $ 150,000.00 Mobile ad $ 10,000.00 Transit ad $ 100,000.00 Hotel TV $ 15,000.00 Hotel Magazine $ 50,000.00 Print $ 200,000.00

Total Media Budget: $1,125,000.00

74 Attendance (est.)

Event Week 1 Week 2 Week 3 Total Regal Horse - charities 6500 5500 3000 15000 Regal Horse - other visits 5000 3000 3000 11000 Carnival 3500 3500 3500 10500 Concert 5000 5000 5000 15000 Tour Packages 2000 2000 2000 6000 Other 1500 1500 1500 4500 Races 2000 2000 2000 6000

Total 68000

75 FORT ERIE BUDGET ALLOCATION ITEM COST REGAL HORSE $ 100,000.00 CNY SPONSORSHIP $ 30,000.00 EVENT OPERATION (for 3 weeks) TBD CULTURAL PERFORMERS TBD INTERNATIONAL LION DANCE INVITATION TBD CONCERT PERFORMER (SPONSORED) MAINSTREAM TBD ASIAN TBD STAGE PRODUCTION TBD PUBLIC RELATIONS TBD ADVERTISING AND MARKETING MEDIA $ 1,125,000.00 PRODUCTION $ 250,000.00 OPERATION (Horses 101 website, Regal Horse Mobile Exhibition, etc.) TBD EVENT MANAGEMENT $ 150,000.00 SUBTOTAL $ 1,655,000.00 ESTIMATED TOTAL $ 2,650,000.00 SPONSORSHIP REVENUE TBD

APPENDIX

APPENDIX A - Proposed 2014 Racing Schedule: Key Phases APPENDIX B – 2014 And Beyond: Business Plan With Festival APPENDIX C – Financial Summary APPENDIX D – Capital Improvement Overview APPENDIX E – 2014 Race Advertising Summary APPENDIX F – 2014 Pre-Qualification Race Advertising Summary APPENDIX G – Proposed 2014 Racing Schedule (400 Races)

APPENDIX H – FELRC Year of the Horse Festival Budget

APPENDIX A - Proposed 2014 Racing Schedule: Key Phases

PHASE 1: April 25th – May 25th • Training of horses. • Preparation of facility.

PHASE 2: May 26th – August 9th • Pre-qualification racing to ensure adequate horse supply during Year Of The Horse events. • Point system begins in order to quality horses for “added money” races. • Allows for “B” level horses to earn purses.

PHASE 3: July 2014 (date TBD) • 79th running of the Prince of Wales Stakes.

PHASE 4: August 10th - August 26th • Year Of The Horse festival racing. • Leading point system horses to compete in feature “added money” races.

PHASE 5: August 27th – October 7th • Post festival racing. • Allows for “B” level horses to earn purses.

APPENDIX B – 2014 And Beyond: Business Plan /w Festival

2014 AND BEYOND BUSINESS PLAN WITH FESTIVAL

1. INTRODUCTION:

In light of the late decision to award 2013 racing dates to Fort Erie in late March efforts by our creative racing secretary, a safe and kind racing surface and support from our limited horse supply at the track we were successful in carding 386 races over a 41 day meeting. Unfortunately, the total number of days had to be reduced from 50 due to eliminating Monday racing. The meeting however was extended due to positive financial results whichincreased revenue from pari-mutuel results., food and beverage sales and program revenues along with significant cost savings in our maintenance operation.

There was an unique sense of optimism at the end of the meeting on the part of horsepeople and employees due to these positive results and it is our hope that this will be reinforced by a quick decision to award racing dates to Fort Erie for the next five years. The longer the decision takes the more unlikely there will be a sufficient horse supply to repeat 2013’s season. On the other hand, if a five year extension is approved, our research confirms that our horse population will increase to the level that a three day a week season can be supported by new and existing owners and trainers becoming more involved due to the added security of not knowing what next year will bring.

APPENDIX B – 2014 And Beyond: Business Plan /w Festival

2. IMPORTANCE OF HORSE POPULATION:

In order for Fort Erie’s resident horsepeople to stay operating, there needs to be racing at Fort Erie, as they can not afford the increased costs associated with racing at Woodbine. As well, in order to have racing during the “festival”, either our horsepeople will have to supply the horses or Woodbine will have to provide the horses for racing. This means that Woodbine would have to reduce its own wagering. Just moving Woodbine races to Fort Erie will transfer $2.4 million in purses (6 days at $400,000 per day) and result in less commission income as betting levels at Fort Erie on “A” racing are not what they would be at Woodbine. The net result is that it is about the same cost to have our own horses as to ship horses from Woodbine, with the added benefit of keeping our horsepeople and staff employed and all the other economic benefits resulting from the operation of the track.

In 2013 Fort Erie had a horse population of approximately 350 horses which was slightly less than 50% of the horses that were stabled at the track in 2012. Our initial approach will be to schedule a 28 day meeting in 2014. A regular assessment of our horse population will be made on a daily basis to assess changes in the schedule which could include lengthening the season as was the case in 2013. There is a high confidence level that if a five year extension is granted there will be a major influx of horses as existing trainers are confident their owners will invest knowing that this is not a year by year racing season. Interestingly, former Woodbine trainers who have now relocated into the Niagara Peninsula have indicated they will get involved in the Fort Erie racing program in an aggressive fashion.

Clearly the two issues of paramount importance to owners and trainers are the purse levels and the length of the season. If the purse levels can be increased, which has not been the case for the past 6 years and the season presented in such a fashion that the likelihood of extending the meeting is realistic this will improve our chances of attracting existing and new stable to the track. Extra efforts will be made to send member s of our race office staff to solicit trainers at similar tracks of Fort Erie calibre horses to sign up for stall applications

APPENDIX B – 2014 And Beyond: Business Plan /w Festival

3. 2014 PROPOSED RACING DATE SCHEDULE:

Give the success of our 2013 season and not knowing when, and if, a decision will be made concerning 2014 and beyond it is our plan to apply for the following racing date schedule. It is important to note that it will be the objective of our racing department to fill as many races as possible in order to reach our goal of our projected number of races. • Begin Sunday, May 25th – post time of 2:00 pm • Continue with Sunday and Tuesday (4:15 post time) through June 22 • Sunday, Monday and Tuesday (4:15 pm) from June 30 through September 1 • Total of 39 days

4. RACING STRATEGY:

The theme will be to concentrate on a “Festival” theme which will be predicated on three racing/marketing initiatives: Firstly, there will be a local component to the meeting which will include a point system for the local races awarding the winning horse, trainer and jockey points for finishing first, second or third. Theses points will be carried over through July 1st and the horses with the most number of points will be eligible for six stakes races on closing day.

Secondly, the focal point of the meet from July 1st on will be the POW which will be held on Tuesday, August 26 (this will involve negotiations with WEG concerning the date of the Breeders Stakes)

Thirdly the final day of racing scheduled for Monday, September 1 will include the Cup races which Fort Erie is accustomed to along with the Puss n Boots stakes races which is traditionally held on this weekend and is well received by our horsepeople and customers prior to the “off season” starting at the track.

APPENDIX B – 2014 And Beyond: Business Plan /w Festival

5. PURSES:

Assume all purses determined and funded by Panel.

Since there has not been an increase in over 7 years a logical business decision would be to increase purse levels from 2013 by at least 5%.

Purses for final day of stakes races on September1 should be increased from the Cup level of $30,000 to $50,000 which will attract some Woodbine horses during the year to ship down and qualify for finals

6. QUARTERHORSES:

There is still the unanswered question as to why there is no quarterhorse racing at Fort Erie given the positive results which occurred from both an attendance and wagering perspective for the three year pilot project engineered by Ontario Racing Commission. The pilot project proved that there is a market for this brand of racing and from the comments from the quartherhorse owners and trainers the amenities offered to them were substantially better than those at Ajax. It is our objective to apply for quarterhorse dates for Fort Erie to complement the existing 28 days so combined programs can be offered which is attractive to our customers and advantageous to our operating cost

APPENDIX B – 2014 And Beyond: Business Plan /w Festival

7. MARKETING STRATEGY:

Our 2013 marketing budget was $220,000 for the 41 day meeting which is insufficient in terms of fulfilling all of our marketing objectives including radio, television, digital signage and newspaper coverage. In order to augment this budget it is FELRC intent to approach the Ministry of Tourism to support our marketing campaign with a $500,000 grant. This would enable us to add to our existing strategy by: • Hiring a professional creative firm to create logos for the Fort Erie Festival and have them printed on flags, banners and buttons to be displayed prior to and during the racing season. • Hiring additional staff to provide support for race day promotions and canvassing of local areas for posters and marketing material distribution. • Implementation of a major bus campaign to transport customers from Niagara Falls, the Niagara Peninsula and Buffalo complete with food and beverage discounts. • Develop a plan to acquire corporate sponsorship. • Translation of web site and racing information into Chinese. • Fund the costs of hosting high profile concerts on Twilight Tuesdays. • Expand the theme of Farmers Market and include US vendors. • Assist in major promotions which include food truck vendors, local RV and camping/outdoor. • Major emphasis on penetrating Buffalo and Niagara Falls markets (television, radio, print and digital boards). • Bus tours would be a major focal point of strategy. • Generate interest in corporate sponsorship. • Integrate and host all of the events for the annual July 1 – July 4 Holiday Festival. • Introduce the concept of “match races” where two thoroughbreds or quarterhorses compete against each other between races. Bettors can place a bet (non pari-mutuel) and each ticket will be color coded according to the saddle pad color of the horse. Winning tickets will be placed in a drum and the winner wins 50% of the “pool” with the balance going back to the track. Obviously needs fine tuning and regulatory consideration.

APPENDIX B – 2014 And Beyond: Business Plan /w Festival

8. TELETHEATRES:

No plans are in the works to expand the number of teletheatres at this time.

The decision to create one home market area as recommended by the panel has resulted in us relinquishing control of our teletheatres to Ontario Live Racing and this has been factored into our business plan

9. CAPITAL IMPROVEMENTS:

The age of the facility will require attention over the proposed five year period.

The attached list details the proposed projects which would be earmarked for inclusion in the 2014 racing season.

It should be noted that all of these projects have a direct impact on cost cutting initiatives which provide a quick payback or have an attractive return on investment which means they will pay for themselves over the period of the deal.

The proposed Capital Budget list is attached for review.

10. FINANIAL RECONCILATION:

See attached.

APPENDIX C – Financial Summary APPENDIX D - Capital Improvements

New, large, in-field digital TV to replace damaged TV screen $ 200,000 Equipment enhancements $ 250,000 Modernized dining rooms and customer areas $ 450,000 Property and facility repairs $ 700,000 TOTAL $1,600,000

APPENDIX E - 2014 Fort Erie Race Track Race Advertising Summary

2014 Media Direction APPENDIX F - 2014 Fort Erie Race Track Pre-Qualification Race Advertising Summary APPENDIX G - Proposed 2014 Racing Schedule (400 Races) APPENDIX H - FELRC Festival Budget

Fort Erie Live Racing Consortium Festival Budget